Tuesday, September 5 2023 20:04

EBRD and EU sign first loan under EFSD+ Financial Inclusion Programme  with Acba bank 

EBRD and EU sign first loan under EFSD+ Financial Inclusion Programme  with Acba bank 

ArmInfo.The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are helping improve access to finance for Armenian micro, small and medium-sized sized enterprises (MSMEs) through Acba Bank.

This collaboration sees the EBRD extending a loan equivalent to US$ 15 million in Armenian  drams to help Acba Bank reach more businesses, especially those  located in rural areas. The funding will also address the growing  demand for longer-term local currency financing.

Supported by the EU, the project operates within the framework of the  European Fund for Sustainable Development Plus (EFSD+) guarantee  programme.  This initiative introduces an innovative  first loss risk  cover, currently available in the southern and eastern Mediterranean  region (Egypt, Jordan, Morocco, Tunisia, Lebanon and the West Bank  and Gaza) and eastern Europe and the Caucasus (Armenia, Azerbaijan,  Georgia, Moldova and Ukraine). The EFSD+ financial inclusion  programme is designed to empower MSMEs, fostering their  competitiveness and growth. By offering effective financial tools and  expertise, the programme aims to drive development and create jobs.

The official signing of the loan agreement took place in Yerevan with  Acba CEO Hakob Andreasyan and the EBRD's First Vice President Jrgen  Rigterink formalising the commitment.

Mr Rigterink  said: "We are pleased to step up our support for MSMEs  in Armenia together with our financial and institutional partners. A  strong private sector is among the EBRD's priorities in the country  and the funding will support more private businesses in rural areas.  Making the funding available in drams will protect borrowers from  foreign currency-related risks."

Lawrence Meredith, Neighbourhood East and Institution Building  Director at the European Commission, commented: "We welcome this  EU-backed loan agreement between the EBRD and Acba Bank, which will  provide new opportunities to MSMEs across the country, especially in  rural areas. Supporting a sustainable, innovative and competitive  economy is among the five flagship initiatives of the EU's Economic  and Investment Plan in Armenia. As we address the pressing need for  extended local currency funding, we pave the way for a more resilient  and innovative future for Armenia's business ecosystem."

Hakob Andreasyan, CEO of Acba Bank, added: "Acba Bank and the EBRD  have a rich history of partnership going back to 2003. Our  partnership has continuously expanded over the years through  different programmes directed at supporting the Armenian economy,  particularly during economic shocks or downturns. The EBRD has been  always innovative in its programmes. We are delighted to join our  forces once again with our partners, the EBRD and the EU, to continue  to support local MSMEs in terms of their current liquidity needs and  long-term investments, especially in rural Armenia.''

This project also contributes to the implementation of the EU's  Economic and Investment Plan (EIP) in the Eastern Partnership  countries. One of the key flagship priorities of the EIP for Armenia  is to promote a sustainable, innovative and competitive economy by  directly supporting up to 30,000 small and medium- sized enterprises  (SMEs) in the country. 

Acba Bank, a long-standing partner of the EBRD since 2003, is one of  the leading banks in Armenia, with a strong position in lending to  agriculture and MSMEs, especially in rural areas. With its network of  64 branches in all regions of Armenia, it can reach out to numerous  clients in diversified sectors. 

The EBRD is a leading institutional investor in Armenia. The Bank has  invested close to ?2 billion across 206 projects in the country to  date, where it is supporting private sector development and the  transition to a sustainable, green economy.

According to the Financial Rating of Armenian Banks as of June 30,  2023, prepared by ArmInfo IC, ACBA Bank is the undisputed leader in  lending to the agricultural sector - 122 billion drams ($316  million), thereby covering over 44% of the total market volume.  Agricultural loans account for about 26% of the Bank's loan  portfolio. ACBA Bank also takes the lead in lending to SMEs - 225  billion drams ($583 million), ensuring an annual growth of 57.1%. In  the Bank's loan portfolio, the share of SME loans accounts for over  47%, and in the total market volume the bank's share reaches 20%. In  terms of total loan investments, ACBA Bank is in the TOP-5 with a  volume of 476.2 billion drams or $1.2 billion, ensuring an annual  growth of this indicator by 17%.  

POST A COMMENT
Input digits     


News
Expert: Armenia has every chance to become a key regional  hub for  innovative solutionsExpert: Armenia has every chance to become a key regional  hub for  innovative solutions
IDBank issues the 3rd, 4th and 5th tranches of bonds of 2025IDBank issues the 3rd, 4th and 5th tranches of bonds of 2025
ARMSWISSBANK Launches Mastercard World – A New Premium CardARMSWISSBANK Launches Mastercard World – A New Premium Card
Ministry of Economy: Compared to 2018, job numbers in Armenia  increased by 33.9%Ministry of Economy: Compared to 2018, job numbers in Armenia  increased by 33.9%
Illegal mining in Armenia`s Syunik causes AMD 63mln damage to public Illegal mining in Armenia`s Syunik causes AMD 63mln damage to public 
Rospotrebnadzor requested additional information from competent  authorities in Armenia regarding the reason for the ban of Eskimo ice  cream Rospotrebnadzor requested additional information from competent  authorities in Armenia regarding the reason for the ban of Eskimo ice  cream 
Pashinyan discusses steps for establishing a major AI data center in  ArmeniaPashinyan discusses steps for establishing a major AI data center in  Armenia
In June,  Armenia`s annual inflation rate increased to 3.9%  driven  by higher prices for food  and servicesIn June,  Armenia`s annual inflation rate increased to 3.9%  driven  by higher prices for food  and services
Armenian products to enter Cyprus and US markets: CIBRS announces National Warehouse program strategyArmenian products to enter Cyprus and US markets: CIBRS announces National Warehouse program strategy
European Investment Bank remains Armenia`s key partner in  infrastructure projects - MinisterEuropean Investment Bank remains Armenia`s key partner in  infrastructure projects - Minister
Armenian Parliament gives  Armenian Parliament gives  "green light" to nationalization of ENA
Armenia`s dividends from ZCMC $113mln since 2022Armenia`s dividends from ZCMC $113mln since 2022
Ardshinbank summed up the raffle organized for Mastercard Business cardholdersArdshinbank summed up the raffle organized for Mastercard Business cardholders
Armenia extends ban on export of scrap metal until Feb. 1 2026 Armenia extends ban on export of scrap metal until Feb. 1 2026 
62 trucks with Armenian brandy cross Russian border 62 trucks with Armenian brandy cross Russian border 
Armenia to fix tariff quota on individual types of goods imported  from Iran Armenia to fix tariff quota on individual types of goods imported  from Iran 
Narek Karapetyan: Almost all infrastructure companies, except for  ENA, have increased their tariffs for servicesNarek Karapetyan: Almost all infrastructure companies, except for  ENA, have increased their tariffs for services
EIB: Education is one of key areas of partnership between EU-Armenia EIB: Education is one of key areas of partnership between EU-Armenia 
Armenian Deputy Foreign Minister participates in  4th International  Conference on Financing for Development in SevilleArmenian Deputy Foreign Minister participates in  4th International  Conference on Financing for Development in Seville
Armenian Prime Minister, President of  Trafigura Group discuss  potential  cooperation  in mining sector  Armenian Prime Minister, President of  Trafigura Group discuss  potential  cooperation  in mining sector  
ADB to provide Armenia with EUR236 million for construction of  Sisian-Kajaran roadADB to provide Armenia with EUR236 million for construction of  Sisian-Kajaran road
Vassilis Maragos: EU willing to strengthen technological cooperation with Armenia through concrete stepsVassilis Maragos: EU willing to strengthen technological cooperation with Armenia through concrete steps
Ardshinbank at the Forefront of Digital Security: Sponsor and Participant of BugBounty 2025 EventArdshinbank at the Forefront of Digital Security: Sponsor and Participant of BugBounty 2025 Event
Armenia`s regulator  approved the sale of 100% of GNC-ALFA s shares  to Viva Armenia CJSCArmenia`s regulator  approved the sale of 100% of GNC-ALFA s shares  to Viva Armenia CJSC
 International Chamber of Commerce ready to assist Armenia in hosting COP-17 International Chamber of Commerce ready to assist Armenia in hosting COP-17
Armenia to extend ban on ferrous metal exportsArmenia to extend ban on ferrous metal exports
IDBank Opens a New Branch at Homplex MallIDBank Opens a New Branch at Homplex Mall
MONEYVAL experts to visit Armenia in September to assess work on money laundering control MONEYVAL experts to visit Armenia in September to assess work on money laundering control 
Goods traceability to be improved in Armenia Goods traceability to be improved in Armenia 
Vaharshapan and Khoi communities to be merged Vaharshapan and Khoi communities to be merged 
Armenian NA OKs ENA nationalization Armenian NA OKs ENA nationalization 
Viva celebrates 20th anniversary: Armenia`s high-tech industry  minister on reforms in Armenia`s telecommunication industry Viva celebrates 20th anniversary: Armenia`s high-tech industry  minister on reforms in Armenia`s telecommunication industry 
Economic diversification meets Armenia`s interests - Kaja Kallas Economic diversification meets Armenia`s interests - Kaja Kallas 
5.1% increase in number of jobs in Armenia 5.1% increase in number of jobs in Armenia 
AraratBank: Special Rate for SWIFT Transfers up to EUR 20,000AraratBank: Special Rate for SWIFT Transfers up to EUR 20,000
Team Telecom Armenia, Team Systems under one roof: new Team Place  smart solutions center  openedTeam Telecom Armenia, Team Systems under one roof: new Team Place  smart solutions center  opened
Armenian Parliament discussing  nationalization of Electric Networks  of Armenia CJSCArmenian Parliament discussing  nationalization of Electric Networks  of Armenia CJSC
Armenia values development of  cooperation with Denmark in  high  technology and renewable energyArmenia values development of  cooperation with Denmark in  high  technology and renewable energy
ArmSwissBank: First in Armenia to Publish a Climate Transition PlanArmSwissBank: First in Armenia to Publish a Climate Transition Plan
Ucom Launches 5G Network in Abovyan and EjmiatsinUcom Launches 5G Network in Abovyan and Ejmiatsin
Armenia`s government to be entitled to approve new vehicle purchase support programmesArmenia`s government to be entitled to approve new vehicle purchase support programmes
WB appoints Fabrizio Zarcone as its new Country Manager for ArmeniaWB appoints Fabrizio Zarcone as its new Country Manager for Armenia
Armenia`s government violating Constitution and laws by trying to expropriate ENA - lawyer Armenia`s government violating Constitution and laws by trying to expropriate ENA - lawyer 
Armenian president holds bilateral meetings in Spain Armenian president holds bilateral meetings in Spain 
RA Tourism Committee, South Caucasus Railway combine efforts to develop tourism RA Tourism Committee, South Caucasus Railway combine efforts to develop tourism 
Populism being institutionalized in Armenia - ex-official Populism being institutionalized in Armenia - ex-official 
Samvel Karapetyan`s family starts investment dispute with Armenia Samvel Karapetyan`s family starts investment dispute with Armenia 
RA Minister of Economy  discussed  Armenian cargo carriers` situation  with his Georgian counterpartRA Minister of Economy  discussed  Armenian cargo carriers` situation  with his Georgian counterpart
Expert: Armenian businesses  face obstacles  to growth due to  unfavorable conditions Expert: Armenian businesses  face obstacles  to growth due to  unfavorable conditions 
Export growth has been minimal in recent years: Luys FoundationExport growth has been minimal in recent years: Luys Foundation
Economy Ministe: Armenia  determined to realize its agricultural potential despite numerous challengesEconomy Ministe: Armenia  determined to realize its agricultural potential despite numerous challenges
Economist: Women in Armenia are more productive in business, but  their involvement remains lowEconomist: Women in Armenia are more productive in business, but  their involvement remains low
Customer Appreciation Day at IDBankCustomer Appreciation Day at IDBank
ENA Acting CEO dismisses the idea of reducing tariffs under the new manager as a mythENA Acting CEO dismisses the idea of reducing tariffs under the new manager as a myth
ENA to defend its rights within law - statement ENA to defend its rights within law - statement 
AraratBank Joins BAFT AssociationAraratBank Joins BAFT Association
No romanticism, businesses soberer now - Tigran Jrbashyan No romanticism, businesses soberer now - Tigran Jrbashyan 
More than 2/3 of Armenian entrepreneurs do business in the extractive sector and consumer servicesMore than 2/3 of Armenian entrepreneurs do business in the extractive sector and consumer services
Minister: 69 trucks with Armenian cognac heading to Russian borderMinister: 69 trucks with Armenian cognac heading to Russian border
Economy Minster  discussed upcoming tasks with  WB Country Office HeadEconomy Minster  discussed upcoming tasks with  WB Country Office Head
Read more
Exchange rates
04.07.2025
RUB4.88-0.01
USD384.26-0.20
EUR452.58-0.89
GBP524.44-0.77
CAD282.69-0.27
JPY26.62-0.11
CNY53.65-0.04
CHF484.14-0.98